Fit

Fit

The matching of the investor's requirements and needs such as risk tolerance and growth potential preference with a specific investment. Also, how well or how poorly a regression line represents the data points it is based on. A good ‘fit’ indicates a high correlation coefficient.

Fit

fit

A condition in which a security fulfills an investor's portfolio needs. For example, an investor may select a new municipal bond because that bond's maturity makes it a good fit in the investor's portfolio.

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